ACIT 25(1), MUMBAI vs. G SHOES EXPORTS, MUMBAI
In the result, the assessee’s appeal is partly allowed
ITA 6209/MUM/2014[2010-11]Status: DisposedITAT Mumbai24 Oct 2016AY 2010-11
Bench: Shri Sanjay Arora, Am & Shri Amarjit Singh, Jm आयकर अपील सं./I.T.A. No. 5736/Mum/2014 ("नधा"रण वष" / Assessment Year: 2010-11) G. Shoes Exports Asst. Cit-25(1)/Cit City 25 बनाम/ 2Nd Floor, Bandra Kurla Complex, 1, Hitex Industrial Estate, S. V. Road, Dahisar (E), Bandra (E), Mumbai-400 051 Vs. Mumbai-400 068 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aacfg 5376 P (Assessee) : (Revenue) & आयकर अपील सं./I.T.A. No. 6209/Mum/2014 ("नधा"रण वष" / Assessment Year: 2010-11) बनाम/ Asst. Cit-25(1), G. Shoes Exports Mumbai-400 051 Mumbai-400 068 Vs. (Revenue) : (Assessee) Assessee By : Shri Radheshyam Jain : Shri Airiju Jaikaran Revenue By सुनवाई क" तार"ख / : 24.06.2016 Date Of Hearing घोषणा क" तार"ख / : 24.10.2016 Date Of Pronouncement आदेश / O R D E R Per Sanjay Arora, A. M.: These Are Cross Appeals, I.E., By The Assessee & The Revenue, Directed Against The Order By The Commissioner Of Income Tax (Appeals)-35, Mumbai (‘Cit(A)’ For Short) Dated 16.7.2014, Partly Allowing The Assessee’S Appeal Contesting It’S Assessment U/S.143(3) Of The Income Tax Act, 1961 (‘The Act’ Hereinafter) For The Assessment Year (A.Y.) 2010-11 Vide Order Dated 20.3.2013. 2
For Appellant: Shri Radheshyam Jain
Section 143(3)Section 32(1)
…The question was finally answered by it in the negative in-as- much as the manufacture of absorbent cotton wool, for which the unit was being set up, could not take place or be produced. Similarly, in CIT vs. Industrial Solvents and Chemicals Pvt. Ltd. [1979] 119 ITR 608 (Bom), the business of the assessee-company was held to be set up only on the receipt of the power connection and not earlier on the purchase of raw material or even the installation of the machinery subsequently. A business is thus set up or established only when it is ready to be commenced, all antecedent processes being preparatory in nature.…
